For those who appreciate growth without the sticker shock, NASDAQ:VITL is worth considering.

Last update: Nov 5, 2024

Consider VITAL FARMS INC (NASDAQ:VITL) as an affordable growth stock, identified by our stock screening tool. NASDAQ:VITL is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Unpacking NASDAQ:VITL's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:VITL boasts a 10 out of 10:

The Earnings Per Share has grown by an impressive 186.49% over the past year.
The Earnings Per Share has been growing by 31.52% on average over the past years. This is a very strong growth
The Revenue has grown by 26.61% in the past year. This is a very strong growth!
Measured over the past years, VITL shows a very strong growth in Revenue. The Revenue has been growing by 34.63% on average per year.
Based on estimates for the next years, VITL will show a very strong growth in Earnings Per Share. The EPS will grow by 43.73% on average per year.
VITL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.08% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Analysis for NASDAQ:VITL

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:VITL boasts a 5 out of 10:

Based on the Price/Free Cash Flow ratio, VITL is valued a bit cheaper than the industry average as 60.44% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of VITL may justify a higher PE ratio.
A more expensive valuation may be justified as VITL's earnings are expected to grow with 43.73% in the coming years.

Assessing Health for NASDAQ:VITL

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:VITL has earned a 8 out of 10:

VITL has an Altman-Z score of 14.06. This indicates that VITL is financially healthy and has little risk of bankruptcy at the moment.
VITL has a better Altman-Z score (14.06) than 97.80% of its industry peers.
The Debt to FCF ratio of VITL is 0.23, which is an excellent value as it means it would take VITL, only 0.23 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.23, VITL belongs to the best of the industry, outperforming 94.51% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that VITL is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.04, VITL belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
A Current Ratio of 3.50 indicates that VITL has no problem at all paying its short term obligations.
VITL has a Current ratio of 3.50. This is amongst the best in the industry. VITL outperforms 85.71% of its industry peers.
A Quick Ratio of 3.03 indicates that VITL has no problem at all paying its short term obligations.
VITL has a Quick ratio of 3.03. This is amongst the best in the industry. VITL outperforms 93.41% of its industry peers.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:VITL scores a 8 out of 10:

The Return On Assets of VITL (14.69%) is better than 93.41% of its industry peers.
The Return On Equity of VITL (19.74%) is better than 85.71% of its industry peers.
VITL has a Return On Invested Capital of 13.41%. This is amongst the best in the industry. VITL outperforms 92.31% of its industry peers.
The last Return On Invested Capital (13.41%) for VITL is above the 3 year average (3.76%), which is a sign of increasing profitability.
VITL has a better Profit Margin (8.69%) than 80.22% of its industry peers.
VITL has a better Operating Margin (10.27%) than 75.82% of its industry peers.
VITL's Operating Margin has improved in the last couple of years.
VITL's Gross Margin of 36.65% is amongst the best of the industry. VITL outperforms 85.71% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of VITL contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.